Pharma sector revenue to reach $2 billion this year

MANILA, Philippines — The country’s pharmaceutical industry is expected to generate close to $2 billion worth of revenue this year, amid rising demand for medicines and government efforts to improve access to health care, according to the Board of Investments (BOI).

In a statement yesterday, the investment promotion agency said the Philippine pharmaceutical industry, which is projected to rake in nearly $2 billion in revenue this year, is expected to continue to grow at an annual rate of 4.1 percent until 2029.

“This upward trend is expected to be largely driven by the increasing demand for generic drugs due to the government’s efforts to make health care more affordable and accessible to all Filipinos,” the BOI said.

As the market expands, the BOI said opportunities for innovation, investment and access to essential medicines also increase.

An Integrated Roadmap for the Philippine Pharmaceutical Industry (IRPPI), which started implementation in 2023, serves as a guide for the sector as it charts its path for growth.

Under the IRPPI, the aim is to significantly increase the local manufacturers’ capacity to produce 60 percent of the country’s registered medicines.

It also seeks to position the Philippines as a global pharmaceutical player in terms of innovation and access.

“The local pharmaceutical market is huge but sadly, the country is very much import dependent,” BOI Industry Development Services executive director Ma. Corazon Halili-Dichosa said.

She said the Philippines saw a steady rise in pharmaceutical imports from 2019 to 2024, with imports peaking in 2021.

Exports, on the other hand, have been declining.

In the first semester, the country’s pharmaceutical imports increased by five percent year-on-year, while its exports declined by 25 percent.

Dichosa said key updates have been seen in the industry, including the issuance of the Philippine Economic Zone Authority’s guidelines on the establishment of pharmazones, which will serve as hubs for companies involved in medical and drug manufacturing, research and development, clinical testing and trials.